Spinning Top candlestick pattern is the common pattern that is used to find the sign to open a trade. This article will show you how to use this pattern and trade it in Binomo.
What is Spinning Top candlestick pattern? How to identify it
Spinning Top and Doji is the patterns that traders see as a sign of a market where neither the buyers nor the sellers could gain the upper hand. It has these basic features:
- Look like a plus mark “+”.
- It has a small body or even nobody.
- Upper shadow and lower shadow have the same length.
When Spinning Top candlestick pattern is formed, there’s a dilemma between the buyers and the sellers. The price may be pushed to a higher price, but it drops later. Finally, the closing price is quite similar to the opening price. When it happens in the support/resistance zone or the oversold/overbought zone of RSI, we can open a profitable trade.
How to trade with Spinning Top pattern in Binomo
Strategy 1: Spinning Top and support/resistance
Requirement: 5-minute candlestick chart + support/resistance level. The expiration time is 15 minutes.
How to open a trade = the price tests restriction area (support or resistance area) + Spinning Top candlesticks appear.
Explanation: There’s a high probability that the price reaches the level zone and bounces back. Spinning Top candlestick is the sign of opening a trade.
Strategy 2: Trendline and Spinning Top candlestick pattern
Requirement: The price is following a trend. The expiration time is 15 minutes.
How to open a trade: the price goes at the end of a trend + Spinning Top candlestick appears as a sign.
Explanation: At the end of a trend, the price loses its momentum. It is possible that the price reverses. Open a trade when Spinning Top candle appears and signs the beginning of a new trend.
Strategy 3: RSI and Spinning Top candlestick pattern
Requirement: RSI (30-70) + 5-minute candlestick chart. The expiration time is from 15 minutes.
How to open a trade: When 2 following conditions are fulfilled.
- RSI is at the overbought or oversold zone.
- A Spinning Top candlestick appears.
Explanation: Spinning Top candlestick appears to marks the reversal of the price when RSI reaches the overbought or oversold zone.
I hope that this article will help you learn another new strategy in Binomo. You can practice this strategy by registering a new account right here. Thanks for your time.